2 History R&D project nfb was established as the result of an ongoing research and development (RD) project, planned in three phases:
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1 The Norwegian association KPI for benchmarking Facilities Management nfb April 22th, 2001 WEB-based system for collection, production and distribution of key performance indicators (KPI) Written by Anne Kathrine Larssen, Multiconsult AS This paper gives a presentation of the new Norwegian association nfb, and a WEB-based system to collect, process and distribute key performance indicators. 1 The association nfb The Norwegian association called "Foreningen Nøkkeltall for benchmarking (nfb)" or in english: "KPI for benchmarking- Facilities Management" was established in March 2001 with the purpose to collect, analyse and distribute KPI-indicators in relation to FM. The association will focus on activities related to the use of KPI-indicators, such as benchmarking-processes and LCC/LCP analysis. Members of the nfb-association can be any organisation or person that is involved within Facilities Management, i.e. real estate owners (both public and private sector), consultants, architects and professional FM-organisations or companies. nfb is a non-profit association with the mission to create and visualise use value for the society as a whole and for each member. Furthermore nfb wants to contribute to the development of FM in Norway, and to coordinate and implement new competence into FM-organisations and educational institutions. nfb's objectives are: To provide a tool, products and services that gives every member the possibility to: o Get an overview of their status in comparison with others o See what areas that might have potential to be optimised o Visualise possible gains o Make better priorities, i.e. the budgeting process, long term planning, LCC etc. o communicate the main messages to their organisations o participate in benchmarking-groups in order to discuss and look behind the data, and analyse the processes. 2 History R&D project nfb was established as the result of an ongoing research and development (RD) project, planned in three phases: MULTICONSULT AS 1 of 6
2 2 Phase 1 (1997- July 1999): The first stages of the project started already in 1997, and resulted in a guideline for establishing KPI-indicators and a revised cost accounts (see attachment), which is now part of the official Norwegian Standard 3454 "Life Cycle Costs". Phase 2 (sept dec.2000) The second stage of the project is financed as a Research and Developmentproject with additional financial assistance from The Directorate of Public Construction and Property, Building Services for the Ministry of Defence, Multiconsult and Norwegian association for maintenance. When the KPIassociation is put into operation, the members will pay a member fee that covers the operational costs in the longer term. The main purpose of this phase was to develop a system including a WEB-based IT-system to collect, analyse and distribute key-figures. The first data collection was part of a pilot-project that was carried out last autumn (sept-dec. 2000), with 15 participating real estate owners/facility managers. The pilot resulted in the first analysis and publications. Phase 3 ( ) The system and the association nfb is established and in operation from nfb will focus on the use of the figures. Experience shows that key figures must be used with care. It is not enough just to look at the figures without knowing what definitions and other references that lies behind them. Therefore the benchmarking processes, workshops and conferences will be important and profiled activities of the association. In principle any organisation that is involved within professions related to FM can be member of the association. The members will pay an annual membership fee, which gives the access to provide data and receive the main results of the data collection. It will also be possible to buy more detailed statistics, i.e. individual figures. 3 How does the system work? 3.1 Inputs Questionnaires The system is WEB based, which means that the members can find information, register data, buy statistics and reports, read statistics and reports and communicate with the system-administrator through the WEB. Registration of data can be done directly in questionnaires (WEB) or by using a file for
3 3 importation of data. In addition to online help information there will be written guidelines. The questionnaires consists of three main levels: Level 1: General information about the organization or company. This information is static until changes in the organization occures. Level 2: Information about each building/group of buildings, such as location, areas, age, technical data. These data are also mainly static until changes of the buildings occur. Level 3: Annually data i.e. costs, supplies (i.e. energy, water, renovation). These data are to be registered annually. The cost classification is based on the newly revised Norwegian Standard NS 3454 "Life Cycle Cost". The members will have different needs for KPI-indicators. Their possibilities to provide detailed data and resources to perform registration may also differ. The questionnaires are therefore made flexible, with a minimum set of obligatory data that need to be registered, and a set of more detailed information that may be registered voluntarily. The questionnaires calculates some of the key figures (costs and supplies) directly on the screen, to improve the overview during the process of registering data. Inputs are based on official Norwegian standards where these exist. These standards mainly covers building categories, cost accounts and definition of areas. Building categories Building categories are based on the Norwegian Standard NS 3457, defining 9 main functional categories. The main categories are further detailed down to a second and a third level, which makes a total of possible categories. Analysis can be made on any level.
4 4 Cost accounts Norwegian Standard NS 3454 defines a classification system for cost accounts. Costs are divided into 5 main accounts, which are further divided down to a second and a third level. As a minimum it is obligatory to register costs at the main level for three of these cost accounts (management, operation and maintenance). The 5 costs accounts are (see appendix for further details): 1. Management (taxes, insurance, administration) 2. Operation (cleaning, heating, monitoring, minor maintenance) 3. Maintenance (grounds, buildings internal and external, technical installations) 4. Development (upgrading initialised by new demands from i.e. authorities, building owner or occupants) 5. Service Area Areas to be registered are mainly total gross area (obligatory), cleaned area and heated area. In addition it will also be possible for those who want to register each buildings quality/condition for the three parameters: technical (building and technical installations), functional and indoor environment/climate. The quality/condition for each of the parameters are defined on a scale from 0 to 3, where 0 is best and 3 is worst. The method is based on the Norwegian Standard NS Analysis As a start the figures will be presented as average and statistical (mean value, minimum and maximum, standard deviation etc.) analysis. Further development of the system and what sort of analysis to perform will be discussed with the future members of the system. However the options for possible analysis are almost indefinite. The first version of the system will mainly provide costs, supplies and area figures. The ambition is however to prepare continually development of the system, and add other KPI-indicators in later versions, such as post occupancy evaluation (POE). The table below illustrates the types of KPI-indicators that will be included in the first version of the system. Types of KPI System version 1.0 per area (sqm) per unit core activity (i.e. employees, patients)
5 5 Area Costs x x Supplies x x (Other) (x) (x) All costs-analysis will be done separately for the following owner-user categories, since the costs are not comparable between them: Owned and used by the same organisation Owned and let out to others Rented spaces The figures can and/or will be analysed against a number of different variables, such as: Ownership (private, state, municipality) Main usage building categories Age (periods) Quality/condition of the building Weekly operating time Technical installations (mainly those who affects the energy-costs, i.e. mechanical ventilation, heating/cooling systems etc.) Level of out-sourcing of services Size of estates Size of the FM-organisation The level of analysis will vary dependent of the interest from the members and of the amount of data registered on the different levels. x 3.3 Outputs An interactive report function is available online. The user can choose between different parameters (ownership, main usage/building category, year, location etc). The annual data-collection and analysis will result in a booklet to all members with reports on the total data collection. Each member that supply data will also get a booklet with analysis reports based on their individual data. This report will also
6 6 give key figures for each building, for the purpose of internal benchmarking. It will also be possible for each member to buy more detailed or specialised analysis. These products will be developed according to the demand of the members. Some of the general results will also be used in information activities, articles, conferences, workshops, benchmarking activities etc. 4 Validation 4.1 Input Nfb will emphasis on the responsibility of the data providers to validate their data. The questionnaires on the WEB has automatic validation functions and online help information, in addition to a written users guide. The costs figures and some of the supplies figures are also calculated immediately on the screen. It is not possible to register data in the database for a building/group of buildings unless a minimum set of data are given (the obligatory data). In addition the secretariat will perform randomly quality control. 4.2 Output Validation of the output will mainly be performed in to ways: Quality control by advisers from Multiconsult and the secretariat, by checking against available key figures and figures from previous years analysis. Feedback from the members and the external market, trough evaluation of customer satisfaction, benchmarking processes, conferences etc.
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